The H-1B visa registration process for FY27, which was closed on March 19, witnessed a steep decline in filings between 30% and 50% lower than last year according to immigration attorneys. According to a report by Economic Times, this drop is filings reflect the employer caution amid the higher visa fees and an overhaul of the lottery system, which now prioritises wage-based selection. In the FY26, the US Citizenship and Immigration Services (USCIS) received 336,153 eligible registrations.
Who are benefiting from the new system
As per the report by Economic Times, while the decline has impacted large IT outsourcing firms and startups, experts believe that the new rules are creating opportunities for: – Mid-tier IT companies willing to pay higher wages for specialized talent.– Small firms that previously struggled against the odds created by bulk filings from outsourcing giants.– Master’s degree holders in the U.S., who now enjoy a stronger advantage under wage-based prioritization.Shilpa Malik, managing attorney at VisaNation Law Group, noted: “Previously, these companies were often discouraged by the diluted odds created by large outsourcing firms. Now that the playing field is level, they feel they have a legitimate, fair shot at securing talent.”Along with this, the immigration experts also suggested that the employers this year are focusing on higher wage levels to maximise selection chances. This change marks a shift from the past years, when companies often filed large volumes of applications regardless of wage tiers.
What it means for the industry
The new system signals a structural change in H-1B hiring dynamics:* Large outsourcing firms may lose dominance in the lottery process.* Mid-tier IT firms could gain ground by targeting premium talent.* US-based graduates with advanced degrees stand to benefit most.For many companies, the recalibration reflects both the rising costs of H-1B petitions—estimated at around $100,000 for fresh filings—and the need to adapt to a more selective, wage-driven system.This sharp decline in H-1B registrations not only highlight the employer caution, but also open doors for the smaller and mid-tier IT companies to complete more effective for global talent. Along with this, the wage-based system is also reshaping the visa landscape favouring quality over quantity in the filings.
